Executives cleared of conflict after buying condos in social housing project, judge rules

Four executives and employees of Toronto Community Housing who bought condominiums owned by the social housing provider are clear of any conflict of interest, an independent review concluded.

Lawyer and former judge Patrick Lesage’s review found that former CEO and former CFO Derek Ballantyne and Gordon Chu and two other unnamed employees were not in conflict of interest when they purchased condos in the housing board’s Regent Park project in 2009.

“I am satisfied that the two TCHC staff [and executives] did not purchase the condominiums at reduced prices or obtain any upgrades, or accept any benefits or preferences,” Mr. Lesage said in the report.

Board chair Norman Purves said the employees paid the same price as 37 other buyers — who paid different prices depending on time of purchase.

Community housing employees were encouraged to purchase units in the development after the board feared the declining housing market and the condo’s location would affect sales.

Community housing president Eugene Jones, who was not part of the project at the time of sales, said employee purchases helped foster a sense of public confidence in the project.

However, there are still lingering concerns over whether community housing employees should be able to purchase project condos at all.

Councillor Francis Nunziata said she does not think employees should be able to buy project condos.

While there was no formal conflict of interest, Mr. Lesage’s $125,000 report recommends that employee purchases should be disclosed through a “publicly accessible register” to dispel perceived conflict.

Mr. Purves said steps will be taken to ensure future purchases are “transparent, upfront and disclosed” before the project’s second phase goes up for sale.

A full copy of the report will be available on the Toronto Community Housing website.

The condo complex, on Cole Street, has 294 units that went up for sale in May and June 2009. It is part of the Regent Park revitalization project.

A review of the purchases was called in April this year after media reports alleged a conflict of interest.